ETFs inclusion in Stock Connect program to enlarge the investment universe
■ HKEX announced on 24 Dec 2021 that HKEX, the Shanghai Stock Exchange, and the Shenzhen Stock Exchange had reached an agreement on Stock Connect inclusion arrangements for eligible exchange traded funds (ETFs).
■ This report presents a simple analysis of ETFs listed on HKEX.
■ Despite fewer choices vs. A-share-listed ETFs, HK-listed ETFs still look attractive, given lower fees (0.58%) and innovative products (leveraged and inverse series).
■ The latest industry developments, including SPAC listings, ETF inclusion in the Connect program, and co-operation with the Guangzhou Futures Exchange, will create growth opportunities for HKEX [0388.HK] and brokerage firms, such as CITICS [6030.HK], CICC [3908.HK], GF Securities [1776.HK], GTJA [1788.HK], Haitong [6837.CH], and Haitong International [0665.HK].
■ The analysis in this report is based on industry and macro figures and may differ from
the views of individual analysts, in some cases.